ELR Citation: ELR 20060
No(s). 06-31238 (5th Cir. Mar 5, 2008)

The Fifth Circuit dismissed an individual's lawsuit against an offshore drilling company on behalf of the United States under the False Claims Act. The individual alleged that the company, his former employer, ordered him to illegally dump oil and other hazardous substances into the Gulf of Mexico at night in violation of the Clean Water Act (CWA) and the Act to Prevent Pollution From Ships (APPS). He also claimed that the company intentionally withheld information about the oil spills and fraudulently avoided paying fines. Because the company held an oil and gas lease from the United States under the Outer Continental Shelf Lands Act, the individual argued that these actions constituted a breach of the lease. However, compliance with the CWA and the APPS were not prerequisites to continuation of the lease at issue. Nothing in the lease requires cancellation in the event of a false certification. Similarly, his allegation that the company submitted a false certification to avoid potential environmental liability was legally insufficient as well. The individual, therefore, failed to state a claim under the Federal Claims Act.